Is it safe to put money in Northern Rock?

[Krew Bot]

Guys, I have 40,000 in a Rabodirect account. I'm thinking of opening an account with Northern Rock because their rate is 0.7% higher than what Rabo offer. I'm looking for opinions on whether you think its safe to put 40,000 in Northern Rock after the trouble they were/are in recently.

 

[bacchus]

Yes, safest place to put your money at the moment.
Do a search in Savings & Investments forum. Discussed many time there.

 

[GeneralZod]

As people love to say around here "it's guaranteed by Her Majesty's Government".

I recently moved about €23k in there from RaboDirect and UlsterBank. They seem to process lodgement's a bit quicker these days presumably because it doesn't happen that often yet.

 

[justsally]

Would we be as well off putting all our excess cash into Northern Rock or should we still be thinking of diversifying. We're just not in a position to dabble with drip feeder accounts etc. in order to gain a small extra amount of interest. We did have money with Northern Rock but closed the account when we panicked.
We have our current (joint) with National Irish Bank, (rubbish interest) and also have a Regular Saver account there E50,000 (3.9%). Apart from poor interest rates, I'm also concerned under the guarantee deposit regulation that we would be vulnerable - as the guarantee, whilst doubled on a joint account, is still applicable per institution and not per account.

So back to my original question. Should we settle for Northern Rock and just leave enough cash in our current account with National Irish bank to keep things ticking over. At our age we just can't afford to take any unnecessary risks. Can anyone guide me on these matters please.

Thanks for any help

 

[justsally]

apologies repeated post..........have deleted same

 

[ClubMan]

Should we settle for Northern Rock and just leave enough cash in our current account with National Irish bank to keep things ticking over. At our age we just can't afford to take any unnecessary risks.

What amount of money and what proportion of your overall net worth are you talking about? What are your overall financial circumstances? What do you mean by "at our age"? While you are deciding what to do (at least) it would make sense to put all your liquid cash into NR to avail of their 5% gross CAR rate rather than leaving it on deposit elsewhere at worse rates. If you decide that deposits are the most appropriate option for most or all of your cash longer term then you can further maximise interest returns by mixing and matching a number of lump sum and regular saver accounts as outlined in many existing threads.

 

[justsally]

Thanks for your prompt reply. I'm talking about liquid cash which we don't currently need. It's our retirement money so "at our age" is meant to infer that we won't have the years ahead of us to earn again in order to recoup our losses. It's essential for me, at this time, to hand over the day to day management of our finances to my OH, and as we are heading into trouble waters (not money related) I want to make things as easy and manageable as possible for him.

Guess it's Northern Rock for the present time.

Thanks Clubman

 

[ClubMan]

I'm talking about liquid cash which we don't currently need.

How much and what proportion is it of your overall net worth?

It's our retirement money so "at our age" is meant to infer that we won't have the years ahead of us to earn again in order to recoup our losses.

When are you retiring? Have you no other pension or other non cash deposit investments? Do you have any debts?

It's essential for me, at this time, to hand over the management of our finances to my OH and I want to make things as easy and manageable as possible for him.

I don't understand. Why?

Guess it's Northern Rock for the present time.

At least while you are making your mind up. You should probably consider getting some independent, professional advice too.

 

[justsally]

We're not intested in a complete financial make-over. We have no morgage, and no debts - just the usual utility bills and pension is sorted.

Just want gain the most interest on savings of E150.000, with no/very low risk - and no long term contract. "I don't understand. Why?". Suffice to say

we don't have a choice in the matter.


Cheers

 

[ClubMan]

We're not intested in a complete financial make-over.

...

Just want gain the most interest on savings of E150.000, with no/very low risk

Over the medium/long term your lump sum may well lose real value by doing this - e.g. if the rate of inflation equals or exceeds the net deposit interest returns. In spite of what some people assume deposits are not "no risk" when it comes to preserving (never mind building upon) the real value of your money. If you won't go for a financial makeover then you should at least read the key posts, AAM guide to savings & investments, consumer guides on www.itsyourmoney.ie etc.